Banking & Finance

Live Oak Posts Healthy Financials, Eyes Positive Trends

By Jenny Callison, posted Apr 22, 2021
Live Oak Bancshares’ balance sheet for the first quarter of 2021 looks robust. In their comments upon release of the financial data, company officials expressed confidence that the trends will continue.
“It has been a healthy and noisy quarter,” Live Oak’s chairman and CEO James “Chip” Mahan said during the company’s earnings call Thursday. He was referring, in part, to the high level of activity stemming from the most recent round of Paycheck Protection Program (PPP) loans.
Huntley Garriott, president of Live Oak Bancshares' subsidiary Live Oak Bank, said during the call that the bank’s overall growth trends “remain strong.”
And Neil Underwood, president of Live Oak Bancshares, said of the company’s investments, “Things are tracking nicely in the Live Oak Ventures portfolio.”
Both revenues and earnings per share beat analysts' expectations. The company’s net earnings for the quarter were just over $76 million, 64% more than the $46.5 million it earned in the first quarter of 2020, and about $7.5 million more than earnings in the fourth quarter of 2020. Diluted earnings per share reflected that increase, at $0.88, compared with an EPS of negative $0.19 a year ago and a return to investors of $0.68 per share at the end of Q4 2020.
Net interest income made up almost $40 million of the $76 million total.
Live Oak Bancshares’ quarterly report shows that drivers of healthy net earnings included a jump in loan and lease originations, an increase in total deposits and a decrease in borrowings compared with the previous quarter. These factors mitigated Live Oak Bancshares’ slight rise in noninterest expenses incurred in the first quarter, resulting partly from increases in salary and benefits as well as in professional services.
Loan and lease originations in Q1 totaled nearly $1.2 billion, up 136% over the $500 million in originations the company logged in Q1 2020, and up substantially from last quarter’s $808 million in originations. Currently, the company’s loan and lease portfolio totals $6.5 billion, which includes $1.5 billion of PPP loans.  
Average total interest-bearing deposits for the first quarter of 2021 – almost $5.9 billion – were 5.7% higher than those at the end of the previous quarter, which totaled $5.5 billion.
“The increase in total deposits from the prior quarter provides support for the growth in the loan and lease portfolio and origination activities during the first quarter of 2021,” Wednesday’s news release from the company stated.

“Live Oak continued to serve America’s small businesses during the first quarter of 2021 and delivered strong results with $1.2 billion in loan and lease originations,” Mahan stated in the release. “The reopening of the Paycheck Protection Program allowed us to deliver just over $500 million in relief to small businesses during what is hopefully the end of this challenging period for our nation’s entrepreneurs. Our net income grew to nearly $40 million for the quarter as our focus on providing solutions for small business owners and changing the financial technology landscape promoted our growth and advanced our core earnings.”
Ico insights



New Vaccine Tax Credit Available For Many Employers

Dane Scalise - GriffinEstep Benefit Group
Dave sweyer 300 x 300

Looking For Rental Investment Properties? Here’s Why Investing Out Of State Could Be Your Best Bet.

Dave Sweyer - Sweyer Property Management
Aarp suzanneheadshot 300x300

Be Aware Of New Summer Scams

Trending News

Atlanta-based Developer Plans More Than 300 Apartments In Leland

Cece Nunn - May 7, 2021

Local Business Leaders Weigh In On Brunswick's MSA Future

Christina Haley O'Neal - May 6, 2021

Vantaca Fills HOA Industry Need

Scott Nunn - May 7, 2021

Meet The 2021 CEA Winners

Vicky Janowski - May 7, 2021

General Aviation Services Business Hiring Ahead Of Busy Season

Christina Haley O'Neal - May 7, 2021

In The Current Issue

Restaurant Owners Cook Up Big Plans

It’s been said that the road to success is always under construction, and the saying rings true for the McDuffie family....

PPD Influences Regional Economy

The growth Wilmington-headquartered PPD Inc. has experienced in the Port City is an economic driver for the region, local economic developme...

Meet The 2021 CEA Winners

While vastly different, what the 11 companies and organizations do have in common is being chosen by a panel of judges as CEA category winne...

Book On Business

The 2021 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!



Trying to Grow a Business?
2020 Health Care Heroes
2020 WilmingtonBiz 100